Markets are more optimistic today as speculation rises that central banks will take steps to stimulate the global economy. In addition, as investors await the outcome of the Greek Elections this weekend, Equity markets have rallied. This rally was also helped by the BOE announcing a Sterling Liquidity Facility to aid their banks and they plan to have a form of credit-easing in operation within weeks in order to boost lending in the economy. There is increasing speculation that the New Democrats will win the Greek election and keep Greece in the Euro. Later today we have Industrial Production from the US and as I previously mentioned, today is also the expiration of all the US Equity Futures Contracts for June.
Sept S&P 500
The S&P rallied from the 1305 low to 1330 this morning and I was able to take a nice gain on my 1310 long. Today is a very hard day to trade given the futures expiration and, with the Greek elections on Sunday, I will not have a position over the weekend. Instead I will wait for the open of the markets on Sunday night at 11 pm. If the S&P rallies up to the 1360 level on a positive result I will look to sell in this area and if we get a negative result I will be a buyer from 1292/1300. Today if we trade back to the 1320 level I will be a small buyer with a 1315 stop but either way I will not keep the position beyond the close today.
EURO
The Euro continues to slowly trade higher as more and more shorts are forced to cover their positions ahead of Sunday. I have taken profit on my long from yesterday at 1.2630 and I will stand aside until Sunday night. I will still buy any dip from 1.2550/1.2580 with a 1.2520 stop.
July Crude
Crude traded down to my buy area with a 8230 low and we had a 200 point rally as we are now trading at 8460. Again I have taken nice profit and I am now flat. I will look to rest my long position from 8340/8390 with a 8300 stop. Just like the Euro and S&P I do not want to be short as the market is well short crude and I feel we will trade back to the 8900/9000 area over the next week.
June DAX
The DAX worked well as twice we traded down to my buy level below 6090 and we have traded up to 6200 this morning . I managed to to take a nice gain but as I said yesterday the market needs to clear the 6200/6250 area before we can get bullish. I am flat and as it is too dangerous to have a position ahead of the elections on Sunday I am going to stand aside here unless we trade back down to the 6090 area where I would go long again.
Sept Bund
I bought the Bund at 141.60 yesterday and I have gone flat this morning at 142.00. I will still look to rest my long position from 141.20/141.60 with a 140.95 stop.
Sept FTSE
I like the FTSE especially after the the announcement of further stimulus from the BOE. Today I will look to buy the Sept contract from 5430/5460 with a 5420 stop.
Is there any particular reason where you trade futures contracts on Dax, S&P and FTSE as opposed to just the daily market?
Ross, the main reason I trade futures contracts is that they are the markets that I have traded from the start. In addition, before the advent of spread betting in the financial markets, the only way to trade was through a brokerage account when Index Futures Contracts were the way to trade such markets. Spread betting now allows you to trade just the movement of the indices without having to own an actual interest in the underlying contract therefore you are correct in asking, I could indeed switch to the cash markets but old habits die hard!